Fidelity Bank denies NDPC data breach allegations

Fidelity Bank has denied the Nigeria Data Protection Commission (NDPC) alleged data breach, saying there is no evidence to the claims made.

Meksley Nwagboh, divisional head, brand & communications at Fidelity Bank disclosed this in a statement on Thursday.

According to the statement titled “Fidelity Bank Affirms Commitment to Data Protection &Strong Corporate Governance”, the bank was fined ₦555.8 million by the NDPC for allegedly using the details of a customer to open an account in the bank without consent.

However, the bank said that an internal investigation was carried out around the claim and that the account opening process was not completed due to missing documentation.

“In compliance with our Data Protection policy, accounts created online without full documentation are not allowed to be operational and are closed after 30 days if the outstanding documents are not provided to authenticate the identity of the person seeking to open the account,” Nwagboh said in the statement.

The bank clarified that the account was immediately placed on “Post No Debit” status due to the absence of necessary documents, such as a passport photograph and BVN. Fidelity Bank explained that the account was eventually closed after the applicant failed to provide the required documentation within the stipulated 30-day period.

On May 2, 2023, the bank formally responded to the NDPC, denying any violation of data protection laws.

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The situation escalated on July 7, 2023, when Fidelity Bank representatives attended a Pre-Action meeting with the NDPC. Despite presenting their case and providing evidence to support their claims, the NDPC concluded that a penalty would be imposed on the bank.

On December 5, 2023, Fidelity Bank received a letter from the NDPC demanding the payment of a “remedial fee” of ₦250 million within 21 days. The bank immediately initiated further discussions with the Commission, convinced that no laws or regulations had been breached.

However, on August 20, 2024, Fidelity Bank received another letter from the NDPC, this time increasing the demanded penalty to ₦555.8 million.

The statement said “Fidelity Bank continues to dispute the fine, reaffirming its commitment to data protection and corporate governance. The bank has expressed its intent to pursue further engagement with the NDPC to resolve the issue amicably.”